Question
you analyze a bond issued by tm inc. the bond will mature in 6 years and has a face value of 1,000. the coupon rate
you analyze a bond issued by tm inc. the bond will mature in 6 years and has a face value of 1,000. the coupon rate is 4% and coupon is paid on a semi annual basis. the bonds trading with a YTM of 5.75%
a. is the bond currently trading at a discount or premium?
b. by how much will the price of the bond change in terms of amount four years from today if the bonds ytm remains unchanged?
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
